Chris Collins pushes Main Street Revival Act to boost small business

by jmaloni

Press release

Wed, May 1st 2013 11:45 am

Legislation would give small
business owners deferral on payroll tax if they open in targeted areas

Congressman
Chris Collins, NY-27, is pushing the Main Street Revival Act (H.R. 952),
bipartisan legislation that is intended to help promote economic growth and
fill vacancies along America's main streets. Collins is the lead Republican
co-sponsor of the legislation in the House.

"If
Washington is serious about getting our economy back on track, we need to get
serious about supporting American small business," Collins said. "Encouraging
and incentivizing new small businesses, particularly in struggling areas, will
be critical to rebuilding our economy and this legislation does just that."

The
Main Street Revival Act would allow a small business to defer payment of
payroll taxes for one year after it hires its first employee. The taxes will be
paid back in equal installments over the subsequent four years. The deferment
would hopefully provide meaningful relief to a new small business or one that
is just at the beginning stages of growth, which is traditionally a hard time
for my small business owners.

"The
ability to defer payroll taxes for one year may be just enough of a break to
help a new small business owner hire one more person or purchase a new piece of
equipment," Collins said. "This legislation represents the practical,
commonsense solutions Washington needs to take to nurture small business
development, create jobs, and spur real economic development in our
communities."

To
encourage growth in hard-hit areas, the legislation provides the tax deferral
incentive to businesses located in a Historically Underutilized Business Zone
(HUBZones) as defined by the Small Business Administration. In NY-27, sections
of Batavia, Depew, Lancaster, Lockport, Medina and Livingston County are
designated as HUBZones.

The
bill is also limited to true small businesses, those that expect to hire no
more than 25 people during the year period for which payroll taxes can be
deferred. Lastly, H.R. 952 makes clear that nothing in the bill will reduce the
Social Security or Medicare trust funds.

"Incentives
such as the Main Street Revival Act are critical to encouraging small
businesses to set up shop in vacant space in our commercial district," said
Lockport Mayor Michael Tucker. "Small businesses build the economy of our downtown
areas and commercial centers. I think any incentive Washington can provide in
these uncertain economic times may make the difference between a business
opening and a business closing."

"As
the president of the Niagara USA Chamber and a small business owner myself,
this kind of legislation is just the support our small business community needs
as entrepreneurs look to take a risk and start a business," said Deanna
Brennen. "Small businesses make up the majority of our chamber membership and
they are critical to building a better local, regional and national economy."

Collins
is partnering with Congressman Eric Swalwell, D-Calif., on the legislation.

"Good
ideas that help our small businesses know no political party," Swalwell said.
"I welcome Rep. Collins of New York as the lead Republican co-sponsor of the
Main Street Revival Act. This bill was inspired by walking the main streets of
my district and talking with business owners - Republicans and Democrats -
about ways the federal government can help them get off the ground, hire
employees and succeed. This is sensible legislation to speed up local economic
development in the neighborhoods that need it most."